Coal mining: Continuous focus on efficiency and productivity

Coal mining: Focus on efficiency and productivity

Since KPMG presented the first In the Hunter forum in 2014, the downturn in the Australian coal mining industry has continued. More major mining companies have given warning of, or acted on, mine closures, workforce cuts and major asset write-downs.

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Coal mining conveyor belt

As difficult as the market is, coal is still recognised as an essential and growing energy source that will continue to make a significant contribution to the global energy mix for decades to come. For most Australian miners, the challenge is how they can best ride out the storm, and be best placed to compete in a market that will most likely look quite different to the one that preceded the price crash.

KPMG looks at ways to further optimise business processes through a sustainable approach to procurement, supply chain and operating model efficiencies to minimise the effect of the downward commodity prices.

This publication discusses the insights and learnings from the 2015 Hunter Valley Coal forum.

Key insights

  • The continual decline in coal prices in US dollars is testing everyone, though the fall in the Australian dollar has cushioned the impact to some extent.
  • While the focus has been on cost reduction, there is much more value to be had by going beyond price, in working constructively and effectively with suppliers.
  • Success comes to organisations who have both strategic foresight and flexibility, built on an obligatory platform of low cost, reliable operation.



KPMG's Mining professionals assist organisations through all stages of the mining project lifecycle, from exploration to production.

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